Facts

Plaintiff Delta Collins is the trustee of a living trust. In 2009, in a state-court action, Collins obtained jury verdicts against defendants Kenneth Noorigian and Manufactured Structures International Inc.. Collins also obtained a bench decree that confirmed defendant Noorigian's alter-ego liability for Manufactured Structures's liability to Collins. Collins later prevailed on appeal, obtaining an affirmance of the judgment below on all grounds and also obtaining a reversal of the dismissal of a third defendant. The third defendant later settled with her.

In 2014, defendant Noorigian and his wife attempted to have Collins' judgment against him discharged in bankruptcy.

PLAINTIFF'S CONTENTIONS:
Plaintiff obtained jury verdicts against Noorigian for fraud after he misled her into making a loan that was supposed to be secured by collateral that Manufactured Structures' later said it did not own. The secured loan agreement itself was purposefully unworkable.

Result

After a three-day bench trial, a decree of non-dischargeability of debt was issued. The new, non-dischargeable judgment was established to be in the amount of $639,878. Collins also recovered her new attorney fees and other costs. Collins was given leave to record an abstract of her new judgment against debtors' property. She may not otherwise enforce her judgment while the debtors perform their plan of reorganization.

Other Information

FILING DATE: March 10, 2014.